Question: Amazon completed the leveraged buyout acquisition of Regal paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200. Amazon expects to

Amazon completed the leveraged buyout acquisition of Regal paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200.

Amazon expects to sell Regal in 5 years with a 7.5x EBITDA exit multiple, with expected EBITDA of $120 and net debt (i.e., debt - cash) of $550 in year 5.

What is the expected IRR of this deal?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Blackstone completed the leveraged buyout acquisition of Regal paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200. Blackstone expects to sell Regal in 5 years with a...

Blackstone completed the leveraged buyout acquisition of Regal, paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200? Blackstone expects to sell Regal in 5 years with a...

A LBO firm completed the leveraged buyout acquisition of Fibria paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200. The LBO firm expects to sell Fibria in 5 years with...

Executive Memorandum (EM) Guidelines Prepare an executive summary of the papers that is only one page long.The assignment should be typed in Word, font size 11 double spaced, with minimum margins of...

The requirements are in world file. The pdf file includes the case. Only one-page write. Answer following questions and write one page (double space) What are the challenges of exiting private equity...

I am working on the Dupont Buyout Case study, I see documents uploaded by by Jameszs- I am wondering how he arrived at the answers in the tables he provided. Is there an excel spread sheet that I can...

Corporate Finance Course it's about Whole Foods purchase by Amazon. below are the questions need to be answered, also the documents are attached. QUESTIONS: 1.The investment thesis on AMZN has ALWAYS...

USG Corporation case study questions. Questions and cases are attached. Assignment In your analysis, you should address the following questions: 1) Review USG's business, it's past performance, and...

Attached is the assignment requirement and 2 previous assignments as example 1- the assignment should be zero plagiarism and similarity (no copy ans paste is accepted) 2- should be completed in the...

Case 11 Equal Exchange: Doing Well by Doing Good1 Rev. Dr. Benita W. Harris Asbury United Methodist Church Frank Shipper, PhD Perdue School of Business, Salisbury University Karen P. Manz Author and...

A system is equipped with two pressure gages and a manometer, as shown in Fig. P3-148. For h = 12cm, determine the pressure difference P = P 2 P 1 . Air Ah Manometer fluid SG = 2.15 Oil SG = 0.87 P:...

Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). The asset will cost $210,000 and it will produce earnings...

2228. The platform AB when empty has a mass of 400 kg, center of mass at G1, and natural period of oscillation t1 = 2.38 s. If a car, having a mass of 1.2 Mg and center of mass at G2, is placed on...

Additional information: a. The difference in the beginning balances in the company's records and the bank statement relates to check #530, which is outstanding as of June 30, 2021. b. Check #533 is...

Based on the following data, what is the Br-Br bond energy? 2 H2(g) + Br2(g) HBr(g); AH=-36.44 kJ/mol-rxn Bond Bond Energy (kJ/mol) - 435 -Br 362

Meyer Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company's annual accounting period ends on December 31, 2011. The following...

There is a project with three main modules. The size estimated for these modules are as follows: Input: 600; Output: 700; and screen: 150 (all in LOC) Project is developed through a waterfall model...

It is assumed that a shaft caries four masses A, B, C and D which revolve in the same plane. The radii of rotations for these masses are 40 mm, 50 mm, 60 mm, and 30 mm. respectively. The given masses...

Which of the following statements are true? a . A statement of cash flows prepared using the direct method produces a different figure to net cash from operating activities from that produced if the...

Find the mean x and standard deviation s used to perform the standardization.

Report the standard errors (for continuous values) or confidence levels (for categorical values) for your imputations in Exercise 14

Apply the following inverse ln transformation to obtain the original value: eln value = exp(ln value).